What are the main events to look out for today?

Now that the UK CPI is out of the way, the calendar for the rest of the day is basically empty. The only notable release left is the FOMC Minutes.

FOMC MINUTES 18:00 GMT (14:00 ET)

The FOMC Minutes isn’t generally such a great
market-moving release because the market already knows what to expect
and it becomes stale by the time it’s out as more data gets released in the
meantime.

I would have expected it to be market-moving this time around because
the Fed could have refrained from mentioning the QT tapering at the last
meeting but include it in the Minutes. Since they already communicated the
tapering at the last decision, I can’t see the Minutes being a such a big deal.

Moreover, the Fed speakers have already made it clear that they will hold rates steady for longer and they will need several more months of good inflation reports before considering a rate cut. That’s basically in line with market’s expectations for a cut in September.

Since the Minutes won’t change the current expectations, the market reaction will likely be dim.

Central bank speakers for the day:

• ECB’s Lagarde 08:05 GMT.
• BoE’s Breeden 12:45 GMT (08:45 ET).

This article was written by Giuseppe Dellamotta at www.forexlive.com.